Roku Inc. (NASDAQ: ROKU) released third quarter financial results after markets closed Wednesday. The company said that it had a net loss of $0.09 per share and $173.38 million in revenue, compared with consensus estimates that called for a net loss of $0.12 per share and $169.08 million in revenue. The same period from last year had a net loss of $8.79 per share and $124.78 million in revenue.
Active accounts increased 43% year over year to a total of 23.8 million. Streaming hours were up 63% to 6.2 billion.
Average revenue per user (ARPU) increased 37% year over year to $17.34, on a trailing 12-month basis.
In terms of its segment revenue, the company reported that it had $100.1 million in platform revenue, a 74% increase, and $73.3 million in player revenue, only a 9% increase from last year.
Looking ahead to the full year, the company is raising its guidance. Roku now expects to see full-year revenue growth of 42% year-over-year and gross profit growth to 63%. Consensus estimates are calling for a net loss of $0.11 per share and $722.85 million in revenue for the full year.
Anthony Wood, Founder and CEO, commented in the letter:
We are just starting to witness the massive transition of TV viewing and TV advertising to streaming. Roku is leading the way on the technology front with an operating system that is purpose-built for TV – versus more heavyweight mobile operating systems – and innovative services like The Roku Channel. According to company reports, the largest US cable and satellite TV services together have lost about 2 million linear TV subscribers so far this year – and about 4 million since the end of 2016. The early data suggests that Q3 could be the industry’s highest quarter yet for subscriber losses, while at the same time, user growth on our platform remains strong. The way TV content and advertising are delivered is evolving rapidly and we believe our purpose-built scalable solution is well positioned to be a catalyst for the transition that is underway.
Shares of Roku closed at $58.86, with a consensus analyst price target of $68.08 and a 52-week range of $18.56 to $77.57. Following the announcement, the stock was down 11% at $52.42 in the after-hours session.
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